Equity Residential · NYSE:EQR
Equity Residential — Q3 2023 Earnings Presentation
16 slides from Equity Residential's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Management Presentation
BAXTER – DECATUR, GA Creating Q3 2023 Communities Management Where People Presentation Can Thrive See pages 37 through 44 for information about forward-looking statements, a glossary of defined terms and a related NOVEMBER 2023 Reconciliation of non-GAAP financial measures including the reconciliati
Slide 2: Portfolio is Well-Positioned to Drive Near Term Results
Equity Residential’s PORTFOLIO SUMMARY Portfolio is Well- as of September 30, 2023 — 80,683 total apartment units Positioned to Drive Near Term Results SEATTLE 11% NOI 62% Urban 38% Suburban • Lower exposure to BOSTON 11% NOI 73% Urban oversupplied markets. 27% Suburban NEW YORK • Good exposure to m
Slide 3: Executive Summary
Executive • The long-term health and outlook of our business remains solid as we continue to benefit from a constructive labor market and lower deliveries of new supply in our Established Markets compared to the elevated deliveries in the Sunbelt markets. We serve a well employed and financially res
Slide 4: Revised Guidance
Change at Revised Previous Midpoint Revised Same Store Guidance (includes Residential and Non-Residential): Physical Occupancy 95.9% 96.0% (0.1%) Revenue change 5.5% 5.5% to 6.25% (0.375%) Expense change 4.25% 4.0% to 4.5% - Net Operating Income (NOI) change 6.2% 6.3% to 7.0% (0.45%) EPS $2.20 to $2
Slide 5: 2023 Same Store Revenue Guidance Change
The decline (at the midpoint) in our new same store revenue 2023 Same guidance range is driven by: Store Revenue • Greater seasonality and pricing pressure in San Francisco and Seattle than we anticipated. Guidance • A reduction in Non-Residential Revenue due to the recent Rite Aid Change bankruptcy
Slide 6: 2023 Same Store Revenue Drivers - Pricing
Pricing pressure accelerated in San Francisco and Seattle during the back half of Q3 and into October. 2023 Same Store Revenue Drivers - Pricing Pricing Trend Seasonality – Total Same Store Typical Year 2022 2023 2023 Pricing Trend moderating more than seasonally typical due to San Francisco and Sea
Slide 7: Same Store Revenue Growth – Bad Debt, Net
Bad Debt, Net has improved but remains elevated relative Same Store Revenue Growth – Bad Debt, Net to historical norms. • Bad debt before the application of governmental rental assistance has improved materially since 2022. • The Company has not seen changes in the high credit quality of its custome
Slide 8: 2024 Performance Considerations
2024 Performance Considerations • Long-term fundamentals in Equity Residential’s markets support a healthy multifamily operating environment. Factors Supporting 2024 Growth Job market remains constructive with low New supply in Established General undersupply of housing unemployment, solid wage Mark
Slide 9: Driver of Same Store Revenue Growth for 2024: Forecasted Embedded Growth
Good performance in 2023 positively sets up 2024 for healthy Same Store Revenue Growth. • Forecasted Embedded Growth is the positive or negative contribution to revenue growth implied by annualizing total lease income anticipated for the last month of the current Driver of Same Store year (without r
Slide 10: Driver of Same Store Revenue Growth for 2024 – Loss to Lease
Driver of Same Store Revenue Growth for 2024 – Loss to Lease We expect to see continued rental rate growth as in-place leases expire and are renewed over the course of next year at or close to prevailing market prices. • Loss to Lease is the total in-place lease price compared to current market leas
Slide 11: Appendix
SAVANNA NINE MILE – LAFAYETTE, CO Appendix 11 I MANAGEMENT PRESENTATION NOVEMBER 2023
Slide 12: Glossary of Terms
Glossary of Terms Please reference the Company’s “Third Quarter 2023 Earnings Release and Supplemental Financial Information" from October 31, 2023, including "Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms" for terms such as Earnings Per Share ("EPS"), Fun
Slide 13: Glossary of Terms
Glossary of Terms Please reference the Company’s “Third Quarter 2023 Earnings Release and Supplemental Financial Information" from October 31, 2023, including "Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms" for terms such as Earnings Per Share ("EPS"), Fun
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Equity Residential Non-GAAP Financial Measures - Reconciliations of EPS to FFO per share and Normalized FFO per share (All per share data is diluted) The guidance/projections below are based on current expectations and are forward-looking. Expected Expected Q4 2023 2023 P
Slide 15: 2023 Revised Normalized FFO Guidance and Assumptions
2023 Revised Normalized FFO Guidance and Assumptions The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment
Slide 16: Forward-Looking Statements
Forward-Looking Statements In addition to historical information, this presentation contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. Wh